Gold Price before sudden rise? The opportunity for traders today?

Ein Stapel Barren aus Gold

The Gold price weakened recently. We discussed it yesterday. The mood of stock investors has been too good in the last few days, and even very slightly rising yields on government bonds have made Gold a little less attractive for investors recently. And so the price of Gold fell from $1,764 on the 18th May to $1,693 at the low point yesterday at noon. But as we said yesterday, we want to repeat it today. Primarily because of the money-printing orgies of the central banks and the debt increases of governments, the precious metal remains attractive in the long run. Will further price rises follow?

A sudden rise in the price of Gold today or tomorrow?

We don’t have a crystal ball either. But there is a possibility that the Gold price will suddenly jump up today or tomorrow. Because, as has been suggested over the last few days, the People’s Congress in Beijing a few hours ago finally passed the “Security Law” for Hong Kong. According to critics, this is tantamount to the abolition of freedom, democracy and human rights in Hong Kong (more on this here). Donald Trump had recently announced that the USA would react to this with measures.

US sanctions against Chinese politicians and companies are conceivable. New tariff penalties against China are also possible. Or even a US lifting of the special status for China, which could mean customs-related disadvantages. The intensification of the trade war could be imminent. Trump said recently towards the end of the week he would announce measures if China passes the law. Now the time has come. And “end of the week”, that’s tomorrow? Or is it tonight? Stock prices could fall and Gold prices could soar. Now market participants are eagerly awaiting further tweets from Donald Trump or official announcements from his administration. So far the Gold price has recovered from yesterday’s low.

A chance for traders?

But the market has not yet really reacted to the final adoption of the security law in China. This event had of course already been expected. But now the Trumps chain of events (what a word creation) is on the horizon. And the price of Gold could rise sharply! This morning, shortly before the passing of the law in Beijing, Gold was quoted at 1,720 Dollars. Now the price is at the same level at 1,721 Dollars. So, is this an opportunity for traders who are looking for reasons for a rising Gold price? Decide for yourself! And please do not overlook the fact that today at 2:30 pm German time several important economic data will be released in the USA. They can also influence the price of Gold.

Goldpreis im Verlauf der letzten 30 Tage
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